2010 is certainly going to be an “interesting” year…
By Daniel at 9 January, 2010, 1:16 am
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Volume down around 33% in the US equities markets and down 10% in the European equities markets is probably proof that LIQUIDITY IS DRYING UP AS EXCESS FUNDS ARE DRAINED from the global financial system. This likely portends drops in prices of a significant nature in the coming days and months. Equities have been severely detached from FUNDAMENTALS since a huge amount of liquidity (credit) was poured into the system and mark to fantasy was re-enacted in March 2009. Now it is time to pay the piper with an adjustment in equity valuations.
It also looks like interest rates will be rising in both China and the UK as early as February 2010 and this will put major pressure on rates moving upwards in the European countries and the US in order to prevent major imbalances in currency exchange rates.
Nice one : The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy(GOLDMAN SACH and co) that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.
http://www.theatlantic.com/doc/200905/imf-advice
- AmericanPatriot
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